This commentary is by Monique Priestley, a Democratic member representing the Orange-2 District in the Vermont House of Representatives, and by Caitriona Fitzgerald, deputy director of the Electronic Privacy Information Center.
Jan. 28 marked International Data Privacy Day, a moment to reflect on the digital world we inhabit and the price we pay for its conveniences. Technology permeates every facet of our lives, offering innovations that simplify our daily routines, from smart homes to online shopping.
Yet, beneath the surface of convenience lies a troubling reality: many of these services are designed to extract and monetize our personal data, creating a system where our information is exploited for profit with little regard for our privacy or autonomy. This trade-off, often hidden from view, has created a hidden tax, one that impacts our wallets, our opportunities and the very fabric of our society.
Imagine a world where your physical space is constantly invaded. Someone enters your home, rifles through your personal documents, takes your fingerprints and meticulously logs your every move. This would be a blatant invasion of privacy, protected against by our Constitution. Yet, in the digital realm, this is precisely what data-hungry corporations do. Our phones, apps and smart devices constantly collect data on us — where we go, what we buy, what we read, what we believe — and all this information is sold and shared, fueling a surveillance economy that operates in the shadows.
Algorithms fed by this data make automated decisions that impact everything: employment opportunities, loan applications, housing availability, insurance premiums and even the prices we see for everyday goods. This year, the national conversation has rightly focused on affordability. But these conversations are incomplete without addressing one of the root causes: the unchecked collection, use and sale of our personal data.
Opaque data practices and algorithmic collusion are harming everyday Americans in the real world. Take the allegations of surveillance pricing in the rental market, where landlords allegedly used software driven by shared data to artificially inflate rents. Grocery store chains are reportedly using algorithms fueled by consumer data to drive up prices. Ride-sharing services have come under scrutiny, with accusations that their algorithms engage in dynamic pricing that borders on exploitation. Faulty credit scores based on flawed data can lead to loan denials. The job application process is increasingly fraught, with qualified candidates often rejected by automated systems due to biased or inaccurate data before a human ever sees their resume. Even wages aren’t safe, with companies accused of using data-driven tools to suppress worker pay.
These aren’t isolated incidents; they’re symptoms of a systemic problem. Their addiction to collecting and monetizing our personal data is a direct assault on our ability to live affordable lives. We’re told to work harder and budget better, but the deck is stacked against us. Small businesses and nonprofits are caught in a similar trap, pouring money into online behavioral advertising, controlled by a handful of data monopolies, entering bidding wars against corporate behemoths in a digital black hole.
We can’t talk about affordability without talking about pulling back the curtain on the massive companies that control the digital infrastructure that our societal systems depend upon. Policy efforts to solve everyday affordability issues that fail to address this data privacy crisis are a fool’s errand. If we are serious about addressing the cost of living, we must advance policies that shift power away from the data-industrial complex and back to American consumers.
The Constitution, if written in 2025, would undoubtedly include protections for our digital selves. Since Congress has failed to pass comprehensive federal data privacy legislation, states must step up and enact privacy laws that guarantee us the right to access, correct, delete and control our personal data, while placing meaningful limits on its use and collection. We need laws that prevent data-driven discrimination and empower us to challenge the automated decisions that impact our lives. Furthermore, we need regulations that specifically address algorithmic collusion and price fixing.
This isn’t just about privacy — it’s about economic justice. It’s about ensuring that everyone has a fair shot at a decent life, free from the hidden tax of unchecked data collection. When concentrated power interests abuse our personal data, they put consumers at their mercy, making this a critical kitchen table issue. The time for half-measures is over. We need bold action, a societal awakening to the true cost of our digital dependence. We need to demand transparency, accountability and, ultimately, control over our data. Our affordability, our opportunity, and our future depend on it.
Read the story on VTDigger here: Rep. Monique Priestley and Caitriona Fitzgerald: Why data privacy is the key to unlocking affordability.